Is There An Opportunity With Rheinmetall AG's (ETR:RHM) 22% Undervaluation?
Mar 04
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German (DAX) Market Analysis & Valuation
UpdatedMar 04, 2025
DataAggregated Company Financials
Companies725
- 7D2.5%
- 3M12.5%
- 1Y17.2%
- YTD12.8%
The market is up 2.5% over the last week, with the Industrials sector leading the way, up 4.9%. As for the past 12 months, the market is up 17%. Looking forward, earnings are forecast to grow by 17% annually.
Market Valuation and Performance
Has the German Market valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 04 Mar 2025 | €2.6t | €2.7t | €125.5b | 16.6x | 20.5x | 0.9x |
| Thu, 30 Jan 2025 | €2.4t | €2.7t | €114.6b | 16.6x | 21.2x | 0.9x |
| Sat, 28 Dec 2024 | €2.3t | €2.7t | €114.3b | 15.7x | 19.9x | 0.8x |
| Mon, 25 Nov 2024 | €2.2t | €2.7t | €112.8b | 15.8x | 19.9x | 0.8x |
| Wed, 23 Oct 2024 | €2.3t | €2.7t | €119.2b | 16.2x | 19.2x | 0.8x |
| Fri, 20 Sep 2024 | €2.2t | €2.7t | €119.7b | 17x | 18.7x | 0.8x |
| Sun, 18 Aug 2024 | €2.2t | €2.7t | €118.2b | 17.3x | 18.4x | 0.8x |
| Tue, 16 Jul 2024 | €2.2t | €2.7t | €111.2b | 18x | 19.9x | 0.8x |
| Thu, 13 Jun 2024 | €2.2t | €2.7t | €110.8b | 17.6x | 20.1x | 0.8x |
| Sat, 11 May 2024 | €2.3t | €2.7t | €113.3b | 17.7x | 20.1x | 0.8x |
| Mon, 08 Apr 2024 | €2.3t | €2.8t | €119.5b | 17.2x | 19.1x | 0.8x |
| Wed, 06 Mar 2024 | €2.2t | €2.8t | €126.2b | 15.9x | 17.5x | 0.8x |
| Fri, 02 Feb 2024 | €2.2t | €2.9t | €147.7b | 16.2x | 14.6x | 0.8x |
| Sun, 31 Dec 2023 | €2.2t | €2.9t | €146.5b | 16.8x | 14.7x | 0.8x |
| Tue, 28 Nov 2023 | €2.1t | €2.9t | €147.8b | 16.2x | 14.2x | 0.7x |
| Thu, 26 Oct 2023 | €2.0t | €3.0t | €131.8b | 15.4x | 15x | 0.7x |
| Sat, 23 Sep 2023 | €2.1t | €3.0t | €131.2b | 16x | 16x | 0.7x |
| Mon, 21 Aug 2023 | €2.1t | €3.0t | €131.8b | 16.5x | 16.1x | 0.7x |
| Wed, 19 Jul 2023 | €2.2t | €3.0t | €138.8b | 16.9x | 15.8x | 0.7x |
| Fri, 16 Jun 2023 | €2.2t | €3.0t | €140.2b | 17.3x | 15.7x | 0.7x |
| Sun, 14 May 2023 | €2.2t | €3.0t | €140.9b | 17.3x | 15.5x | 0.7x |
| Tue, 11 Apr 2023 | €2.2t | €3.0t | €148.2b | 16.6x | 14.8x | 0.7x |
| Thu, 09 Mar 2023 | €2.2t | €2.9t | €155.8b | 15.7x | 14.1x | 0.8x |
| Sat, 04 Feb 2023 | €2.2t | €2.6t | €172.1b | 16.1x | 12.6x | 0.8x |
| Mon, 02 Jan 2023 | €1.9t | €2.6t | €173.5b | 15.7x | 11.1x | 0.7x |
| Wed, 30 Nov 2022 | €2.0t | €2.6t | €172.1b | 15.8x | 11.5x | 0.8x |
| Fri, 28 Oct 2022 | €1.9t | €2.5t | €170.9b | 14.7x | 11x | 0.7x |
| Sun, 25 Sep 2022 | €1.7t | €2.5t | €164.1b | 14.3x | 10.2x | 0.7x |
| Tue, 23 Aug 2022 | €1.9t | €2.5t | €164.1b | 15.8x | 11.3x | 0.7x |
| Thu, 21 Jul 2022 | €1.9t | €2.6t | €159.6b | 16.4x | 11.7x | 0.7x |
| Sat, 18 Jun 2022 | €1.9t | €2.6t | €159.5b | 16.4x | 11.6x | 0.7x |
| Mon, 16 May 2022 | €2.0t | €2.6t | €159.9b | 17.3x | 12.6x | 0.8x |
| Wed, 13 Apr 2022 | €2.1t | €2.5t | €143.5b | 18.6x | 14.5x | 0.8x |
| Fri, 11 Mar 2022 | €2.0t | €2.4t | €142.9b | 18.3x | 14.1x | 0.8x |
Price to Earnings Ratio
14.1x
Current Market PE
- Investors are optimistic on the German market, and appear confident in strong long term growth rates.
- The market is trading at a PE ratio of 20.5x which is higher than its 3-year average PE of 15.6x.
Past Earnings Growth
- The earnings for German listed companies have declined 4.3% per year over the last three years.
- Meanwhile revenues for these companies have grown 3.6% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Sector Trends
Which sectors have driven the changes within the German Market?
| DE Market | 2.47% | |
| Financials | 5.53% | |
| Industrials | 4.92% | |
| Materials | 3.62% | |
| Telecom | 3.12% | |
| Healthcare | 1.98% | |
| Consumer Staples | 1.43% | |
| Utilities | 1.36% | |
| Consumer Discretionary | 1.02% | |
| Energy | 0.47% | |
| Information Technology | 0% | 0 |
| Financials | 0% | 0 |
| Health Care | 0% | 0 |
| Industrials | 0% | 0 |
| Real Estate | -0.82% | |
| Tech | -1.63% | |
Sector PE
- Investors favour the Tech sector the most for future growth, which is trading above its 3-year average PE ratio of 39.5x.
- The market's confidence is likely because analysts are expecting annual earnings growth of 23.9%, which is higher than its past year's earnings growth of 8.6% per year.
Forecasted Growth
- Analysts are most optimistic on the Real Estate sector, expecting annual earnings growth of 83% over the next 5 years.
- This is better than its past earnings growth rate of 6.6% per year.
- In contrast, the Telecom sector is expected to see its earnings grow by 2.8% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | Sector | |
|---|---|---|---|---|---|---|
| RHM Rheinmetall | €1.14k | 20.3% +€8.4b | 166.2% | PE72.5x | Industrials | |
| ALV Allianz | €340.30 | 5.3% +€6.6b | 35.0% | PE13.4x | Financials | |
| SIE Siemens | €225.95 | 3.6% +€6.2b | 24.8% | PE23.8x | Industrials | |
| DTE Deutsche Telekom | €35.85 | 3.4% +€5.8b | 62.8% | PE15.7x | Telecom | |
| MUV2 Münchener Rückversicherungs-Gesellschaft in München | €561.60 | 7.4% +€5.1b | 30.7% | PE13x | Financials |
